ELECTRICITY ECONOMICS
Nowadays, we hear the term 'Electricity Economics' most of the times from all over the world especially in TV, news, or even Energy Ministers' speeches.
I would like to know what the exact meaning or the concept of 'Electricity Economics' is and how much its role is important in our life?
I highly appreciate any help in this regard.
Yours faithfully,
Morteza Shabanzadeh
http://mortezash.blogfa.com/
Economic drivers, technologies and demand side management are keys in understanding the long-term trends of both energy and more specifically electricity
consumption. The macro-economic context of energy reveals how energy and electricity consumption are subject to the same drivers - income and price - over long periods. The features of energy service expenditures over time in specific sectors are distinct from one another in terms of consumption profiles, and new sources of electricity demand may substantially change total demand and the way it is consumed. This leads to a closer attention to micro-economic context of energy
demand, and the tension between technically possible energy savings one one side, and the economics and behavioural dimensions on the other side.
Also one can economize on electricity consumption and management in various ways as demonstrated in the below video on YouTube
https://www.youtube.com/watch?v=ldMl8r5ePEc
https://www.youtube.com/watch?v=0ieFZI4-6K8
Actually, It is the economics of 'Electricity'. The demand of electricity, supply of electricity, pricing and market of electricity, costs, feed-in-tariffs, opportunity costs of different electricity production technology, payback period of electricity generation or technology used etc all are discussed in Electricity Economics.
Two very important points in the transition process from fossil fuels to renewables:
- LCoE = levelized cost of energy
- grid parity = (when) does electric energy generated from renewable energy sources at LCoE meet the purchasing price for electric energy from the grid (not neccessarily taken into account the hidden subsidies to the traditional systems granted over the years).
Obviously there are possibilities of bi-production of heat energy and electric energy - so comparison gets complicated - at least in Europe and at least depending on the input factors from lobbyists.
The comments above seems very close to what is normally included in "Energy Management".
What is the difference between "Energy Economics" and "Energy Management" then?
theory of contestable markets and deregulation by Prof. William J Baumol can be applied. Because most of electricity is getting transformed from whole sale market to retail market in the distribution sector.
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